China’s foreign exchange regulator has relaxed rules to boost cross-border investment and attract overseas capital. The State Administration of Foreign Exchange (SAFE) announced late Monday that companies can now use capital account foreign exchange earnings to buy non-self-use residential properties, reversing previous restrictions meant to curb speculative “hot money.” Overseas individuals can also settle property payments earlier nationwide.
SAFE noted that these changes align with China’s evolving real estate policies, as home prices continue to decline. The regulator also removed registration requirements for preliminary expenses and reinvestments, allowing foreign-invested firms to reinvest their forex profits domestically. Additionally, high-tech companies now have higher foreign debt quotas to support growth.
